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HomeMy WebLinkAbout07/07/1992, 9 - CONSIDERATION OF RECOMMENDATIONS FROM THE PROMOTIONAL COORDINATING COMMITTEE FOR THE 1992-93 ADVERTISING CONTRACT. MEETING DATE: il�n�i�►►��ullllllllll�► �IlUlll city of san L_ S OBIspo COUNCIL AGENDA REPORT ITEM NUMBER: FROM: Ken Hampian, Assistant City Administrative Officer Prepared by: David Gray, Administrative Analyst J,� SUBJECT: Consideration of recommendations from the Promotional Coordinating Committee for the 1992-93 Advertising Contract. CAO RECOMMENDATIONS: Approve and authorize the Mayor to execute a one year contract with Barnett Cox & Associates in an amount not to exceed $89,000 for the City's 1992-93 Advertising contract. DISCUSSION: Background The purpose of the City's advertising contract is to develop an advertising campaign that encourages overnight travel to San Luis Obispo from other parts of California. Overnight tourism has been a focal point of the campaign for many years because of its relationship to the Transient Occupancy Tax collected by the City. The City's program has typically targeted the entire State of California, with special emphasis placed on the San Joaquin Valley and Southern California, based on information derived from hotel registers. Review Process In March of this year, the Council approved a revised Request for Proposals (RFP) for Advertising Services for the City of San Luis Obispo. In April, the approved RFP was distributed to thirty-two advertising and public relations agencies in San Luis Obispo County. Paid announcements were also placed in the Telegram-Tribune newspaper of record advertising the availability of the RFPs from the City Clerk's Office. The RFP contained a deadline of May 6, 1992 at 5 p.m. for advertising proposals to be submitted to the City Clerk's Office. Three proposals were received from the following agencies: Marc Leunis Advertising of Calabassas, Barnett Cox & Associates of San Luis Obispo (BC&A), and Wildfire Marketing Communications of San Luis Obispo. The Promotional Coordinating Committee (PCC)established an Advertising Subcommittee composed of Jesse Norris, Chair, and members Jack Gatz and Barbara Gregg. The subcommittee met twice to review applications, identify questions for applicants and make recommendations to the full PCC. Applicants made presentations to the full PCC and answered questions of committee members at their regular meeting on June 10, 1992. Council Liaison members Dunin and Rappa attended. Contract Recommendation After lengthy discussion and deliberation, the PCC voted to recommend the Barnett Cox & Associates agency for the 1992-93 City advertising contract. Marc Leunis Advertising was voted the alternate if the City was unable to come to terms with BC&A. i� h►�it�llllllllp� ���l'�I city of Sant " S OBISPO COUNCIL AGENDA REPORT Page 2 Advertising Report I i In terms of Barnett Cox & Associate's number one ranking, a preference was expressed for an agency that would be subcontracting for printing, art and other creative talent with local business people. There was a high comfort level with Barnett Cox &Associates due to their work with the Chamber of Commerce, BIA, and other City work, such as water conservation. The specific research component proposed by Bamett Cox & Associates met the PCC criteria. Overall, Bamett Cox &Associates provided the most complete and accurate compliance with the Request for Proposals in the Committee's opinion. Staff contacted references supplied by applicants. Barnett Cox & Associates was the only agency to receive unqualified endorsements from the references supplied. In terms of cost, Barnett Cox & Associates and Marc Leunis were identical. Wildfire Marketing Communications proposed the same cost, but for a campaign that would conclude in approximately six months. Barnett Cox & Associates Proposal The agency plans to showcase San Luis Obispo in a way that will make people want to come here and visit longer than planned. The target market will be young and middle- aged families and active seniors from the San Joaquin Valley, Los Angeles-San Fernando Valley and the San Francisco Bay Area. International tourism is an area for potential growth. The campaign will emphasize print advertising, video spots, game show giveaways, and partnership promotions which may include a discount visitor coupon in each loaf of San Luis Sourdough Bread distributed in the Los Angeles area, for example. The agency will also produce a market research piece that will measure results by sampling visitors' opinions. FISCAL IMPACT: The Barnett Cox & Associates' proposal is- in the amount of $89,000. The 1991-93 Financial Plan for the City has allocated $89,000 for advertising and marketing services in fiscal year 1992-93. Funding for this program is derived from Transient Occupancy Tax revenues. Traditionally, the City has designated 20 percent of those revenues for cultural programming, community promotion and economic stability activities. Although the City is currently facing significant budget reductions, staff recommends retaining a strong promotional program, given that the Transient Occupancy Tax is an important General Fund revenue source, and one that has "held-its own", even during these recessionary times. ALTERNATIVES: I 1. Council may consider Marc Leunis Advertising as an acceptable alternative to Barnett Cox & Associates. However, and although this firm submitted a sound proposal, for the reasons identified under Contract Recommendation, staff recommends that Barnett Cox&Associates be considered as the preferred choice. 9Z l�iu7dl►�dillilfllll��� �III11 city oSan , IS OBispo Oftims COUNCIL AGENDA REPORT i Page 3 Advertising Report j I 2. Council may consider reducing the amount of the advertising contract commensurate with General Fund operating cost reductions also under consideration. However, staff recommends that the full amount be appropriated consistent with the City's Financial Plan for the reason outlined under the Fiscal Impact section. Re-evaluation of all promotional contracts can occur with the development of the 1993-95 Financial Plan, in light of the City's fiscal position and the priority placed on the contracts relative to our tourism efforts at that time. ATTACHMENTS: 1. Promotional Services Proposal (Barnett Cox & Associates) 2. Professional Services Agreement to Provide Advertising Services I NOTE: The original advertising proposals as submitted to the City Clerk's Office by the applicants are available for review in the City Clerk's Office. dg\advertis I i I I ►�i i ���►►��►� �►►IIIIIII�1°° ►�� !IIcity of sAn hues oBispo 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100 July 6, 1992 MEMORANDUM TO: City Council FROM: Kim Con SUBJECT: JULY 7. 1992 - ITEM #9 - PCC ADVERTISING CONTRACT The Promotional Services Proposal from Barnett Cox and Associates that was included as a part of agenda report #9 is incomplete. The document was already duplexed and in numbering and copying the report the back pages were overlooked. Please remove pages 9-4 through 9-12 from your binders and insert the attached corrected pages. My apologies for any confusion or inconvenience this may have caused. c: John Dunn Ken Hampian Jeff Jorgensen Deb Hossli Telegram-Tribune File ATTACHMENT 1 BCRA Promotional Services Proposal Prepared for the City of San Luis Obispo Submitted by Maggie Cox Barnett Cox & Associates May 6, 1992 6 A R N E T T C o x 8 A S S O C I A T E S 2511 Gorden Rood 1329 Chorro MONTEREY !A N IV;! N I S F O 61dy.6,Suite 160 Son lui!OSi!po Monterey,CA 93940 CA 9;401 43E.375.7634 805.545.8887 For 406.315.8012 E.,665.545.0660 BC&A- CITY OF SAN LUIS OBISPO TOURISM ADVERTISING -- OVERVIEW The City of San Luis Obispo just keeps getting better and better for visitors. Where once Mission San Luis Obispo was the community's single tourist attraction, today we see a community rich in additional amenities and visitor charm. Our guests enjoy special events year round. San Luis Obispo offers spectacular scenery and pristine air; recreational pursuits, fine dining, delightful shopping, winetasting and above all a warm and welcoming community. Maggie and David Cox, principals in Barnett Cox and Associates (BC&A) discovered that same magic when careers brought them here over a decade ago. They have a unique perspective on the special character that is San Luis Obispo, and hope to collaborate with the PCC and the City of SLO in producing a tourist advertising and marketing program. We believe San Luis Obispo is a remarkable place--but there are difficulties in communicating our city's attractiveness to potential visitors. The City of San Luis Obispo faces two major challenges in its tourism marketing efforts. First, the field of tourism marketing has exploded in such a way that in California alone virtually every community has its eye on some piece of the tourism pie. We are competing with well financed marketing efforts for places ranging from Santa Barbara, Napa Valley and Monterey to San Francisco, Long Beach, Palm Springs and Anaheim. Even small communities like Paradise, Bodega Bay and Sonora are aggressively competing for travelers' attention. The difficulties of market competition are further complicated by both the cost of advertising as well as the overwhelming number of advertising messages bombarding today's consumers. Never before has it been so difficult, nor so expensive, to reach target markets. Conventional methods like network television are being trampled by cable TV; radio stations abound in huge numbers and the narrowing of the print market is such that there are publications for every interest area and newspapers in every language. Add to that everything from direct mail and telemarketing to infomercials and it's easy to see that traditional methods are no longer dependable ways to attract consumers. The good news about tourism advertising is that sound techniques still win and a city with the ingenuity of San Luis Obispo has a number of options available for distinguishing itself. We at Barnett Cox and Associates would like to be part of the team which creates SLO's tourism marketing program. We look forward to having the opportunity to discuss our ideas and your experience together in person at a formal presentation. . 9-yA L OBJECTIVES & GENERAL PHILOSOPHY The objective of the SLO tourism marketing effort is to showcase San Luis Obispo as a tourist destination and attract visitors for multiple night stays here. As longtime residents and businesspeople here, our philosophy is one of community caretaker. We are anxious to create a marketing program that attracts family people and active seniors looking for a tranquil, charming "small town America" getaway. We are sensitive to the value our own residents put on this community, and recommend that the marketing plan should embrace those values. We urge that the community's interest in a smoke free and water conserving, environmentally conscious community be reflected in the advertising and public relations efforts. BC&A feels that San. Luis Obispo's marketing should focus on the community's old fashioned friendliness, small town charm, sense of personal safety, ease of getting around, and opportunities for simple relaxation. TARGET DEMOGRAPHIC GROUPS / GEOGRAPHIC REGIONS BC&A proposes that San Luis Obispo's key marketing niches be identified as young-to-middle-age families and active seniors. There is no question that demographic groups beyond these two are attracted to SLO, but we recommend narrowing the target in order to most effectively reach the largest number of potential visitors. As target demographics, young families and active seniors are being pursued by virtually every marketer today. It has been well documented that active seniors have comfortable disposable incomes and are eager to travel, especially to auto-accessible cities like SLO. Seniors cite both personal safety and sense of financial value as important elements in a travel decision. Young families are considered the backbone of the American economy today. This group is responsible for much of the purchase power seen in our country. Because of two career couples and time and money constraints, this group is more likely to take a number of short distance, long weekend trips rather than the traditional two week family vacation of years' past. Longtime research (formal and informal) on SLO tourist trends reveals repeatedly that the bulk of our visitors come from Southern California and the Central Valley. We know there is also international attraction here, due most likely to the fact that SLO is situated between two major tourist draws in the state: Disneyland and San Francisco. We recommend that advertising/marketing efforts continue to focus on the Southern California and Central Valley markets, with tertiary efforts for international tourists. Advertising should be concentrated in the off season winter months. 3 ELEMENTS NEEDED FOR SUCCESSFUL MARKETING CAMPAIGN: Given the target market and demographics outlined above, we recommend a multi- step advertising & marketing campaign which would include the following components. ♦ LOGO DESIGN / GRAPHIC TREATMENT / SLOGAN The city's tourism marketing efforts will benefit from the development of an overall theme which defines the community. A clearly stated image of San Luis Obispo, as developed in logo, graphic treatment, slogan and copy focus is the cornerstone of a successful, enticing advertising program. Research we have conducted for other clients, as well as Maggie's experience working with feature writers for the SLO Chamber of Commerce continually reveal the same notions: people today stress the importance of monetary value, personal safety, family camaraderie and the pursuit of relaxation. San Luis Obispo offers all these assets to its visitors. We need a graphic treatment that says this to our visitors and showcases our community as the delightful small town that it is. We feel the image and identity currently used in the city is nebulous and somewhat narrow in focus. We suggest more embracing of the small town Americana, time-for-family ideal. This concept would be developed as logo, slogan, overall packaging and copy tone. ♦ RESEARCH We are aware that the idea of market research is one of some frustration for the City and the PCC due largely to the expense of such efforts. BC&A has experience conducting market research for a number of local clients and within a range of budgets. We propose that the contract with the City include a research component which offers some detail at a modest price and is followed up with post-visit information. Most hotel-motels in the city compile information about the tip codes from which reservations originate. This data is.already being collected, and BC&A recommends we take the next step. We would gather information from motels throughout the community, analyze it and provide a report on our visitors. We recommend such a survey be done twice in a calendar year - - for a two month period in July & August (to avoid graduation skewing); and again for winter visitors in January and February. Knowing visitors' origination points is only half the story--the other half is learning about their likes and dislikes of our community, and especially the . 9-sA factors which affected their decisions to visit here. Using the same two research periods, BC&A recommends a follow-up survey of a random 150 summer and 150 winter visitors. We would create a direct mail piece to be distributed about a week after a visit. The simple questionnaire would ask questions about the length of stay, advertising influence, etc. This research, in conjunction with our ad campaign, will help track advertising effectiveness. In order to move people to fill out the questionnaire, we would employ a frequently used technique in which a small gift of some sort accompanies the request. This could range from a refrigerator magnet of our community logo to a coffee mug, some SLO product (sourdough bread, rocky mountain chocolate, etc.). Research shows that this method--gifting in advance— generates a good response rate to questionnaires. We would compile responses into a summary report. ♦ DISPLAY ADS Display advertising in newspapers and magazines as well as commercials on TV and radio have grown tremendously expensive and difficult to measure in terms of effectiveness. The city budget, while a healthy one, does not have the financial resources to effectively penetrate the LA or Central Valley markets. BC&A believes that the advertising budget can be extended several ways--both in terms of co-op advertising as well as in the. benefits of an intensified public relations effort. These efforts should be undertaken in tandem with a print advertising campaign and in coordination with existing programs of the VCB and SLO Chamber. We do believe it is important to have presence in publications reaching key demographics. This is available through the purchase of ad space, and we recommend the purchase of space in Sunset as well as regional editions of broad-stroke magazines such as People, Newsweek and Redbook. We realize this idea is something new to the PCC, and we would like to discuss it with you further. We are concerned that using travel magazines only is narrow in focus, missing key pieces of the target audience. By buying regional publications, we can hone in on key market segments in specific geographic regions. We believe this may be more cost effective and efficient for the City's program. We also suggest the pursuit of a cooperative advertising campaign in which city ads can be increased in size or frequency by the addition of other 'co- sponsors'. For instance, Sands Motel, American Eagle Airlines, F. McLintock's and the SLO Children's Museum could contribute to the cost of an ad in exchange for the addition of each's logo and 800 number. BC&A would oversee solicitation and create the co-op package. s ♦ PUBLIC RELATIONS There are many new and creative avenues available for no-cost exposure to the community, as well as novel ideas for ways of making SLO's communication efforts stand out in a crowd. We are aware of both the Chamber and Vistitor Conference Bureau's contracts with the City for public relations activities. Rather than duplicate existing programs, BC&A would like to work with those groups in intensifying programs and initiating some new methods of gaining exposure. When the Chamber wanted to help promote Fiesta, a package was sent to travel writers that included Taco Works chips and salsa. The products attracted attention and got resultr. We'd like to try something similar for a host of local events and attractions. Possibilities .include using local products, developing video and audio news releases, man-on-the-street interview endorsements, etc. In short, we believe some ingenuity and creativity can separate SLO from the pack of communities vying for attention. The use of multi-media methods, whimsy and the added benefit of local products ranging from San Luis Sourdough to wine and Old Country Deli sausage as well as local artwork and crafts affords a wealth of opportunities. We believe these efforts should touch on travel industry professionals, travel writers, feature writers (especially food sections). We'd recommend the development of a mailing list that can be coded for ease of pulling out special groups (i.e., children's interest, senior interest, architecture, travel, history, music, etc). Targeted marketing will provide both cost efficient as well as effective results and an extension of the paid advertising benefits. ♦ ADDITIONAL IDEAS FOR DISCUSSION Video Snippets -- Through our efforts with the Paso Robles Wine Festival we have worked with Scene West, a video production company. A representative of the company is coming to SLO for the Wine Festival and will also shoot footage for a several other stories while here. These pieces are developed into travelogues which are sold across the country to cable TV stations. The cost to the client is nominal (generally just some assistance with accommodations). Game Show Giveaways --Don't laugh! Game shows throughout the country depend on a company.called Pic TV for prize giveaways. BC&A has established a relationship with the company and placed one of our clients, the Cliff's Resort at Shell Beach, as a prize giveaway. We submit ten / rJrl 6 seconds of video footage for the Cliff s, they provide room giveaways and the game show runs the footage as part of its prize packages on syndicated TV shows across the country. Many of these programs (such as Jeopardy and Wheel of Fortune) are broadcast in the tremendously expensive 7-8 p.m. time period on major market'TV stations. Advertisers a decade ago paid to be on game shows, but through Pic TV, this can be done today at almost no expense. Partnerships -- This notion would take some time to develop, but is intriguing to start considering. The idea of partnership has become an important one in marketing today. When a candy bar company wanted to distribute. samples of a new product to a test market area, it found direct distribution too costly. Instead, the candy bar company struck a unique deal with a cereal company and had its product added into a box of cereal. The two cross-promoted each other, and everybody won. The cereal company had a value-added component that made its product attractive at little additional cost, and the candy bar company distributed candy bars at a modest expense. These kinds of collaborations are becoming standard in marketing and promotion. We -believe similar ideas are available in SLO through our many local products which are distributed in metropolitan areas. How frequently do we see Magic Mountain coupons attached to loaves of bread originating in LA? Again, . we believe collaborations could be developed through hotels, restaurants and attractions (Children's Museum, wineries, Christmas shopping) and local products being sold outside the county. The idea of value-added benefits is what gives this program its pizzazz We'd like to explore it further. ♦ VISITOR RESPONSE MECHANISM (800 NUMBER) If potential visitors see our ads, react to our promotions and want further information, what's the next step? We know the step has to be easy, efficient and inexpensive, and to that end we strongly recommend an 800 number through the Chamber of Commerce. We are aware that an 800 number was tried and has since been disconnected. However, we recommend it be reinstituted and modified somewhat. To be. an effective competitor for tourists we have to have an 800 number--that's simply the trend today. We recommend exploring the idea of a voice mail system on the 800 number to facilitate and expedite requests. For instance, a caller would hear an 9-7 7 initial thirty second promo on SLO, then be told how to order a packet, what number to press for event information, kids activities, hotel lists, etc. We believe that phone communication is key to the success of the program and that it must be simple and immediate to satisfy the caller. SUMMARY & CONCLUSIONS We hope the ideas submitted above, along with the following calendar, budget and agency background information will qualify BC&A for a personal interview to discuss this proposal. We will be happy to provide portfolio materials ranging from TV and radio to print and specialty advertising on your request. We appreciate your time in considering our ideas. . U BCRA BUDGET Research /Visitor Survey S41000 (includes all aspects of survey compilation, questionnaire production & distribution, gift for respondents, postage, final report, etc.) Display Advertising: Magazine Placement 572,000 (includes development & creation of print ads, media materials, specialty advertising, postage, printing& material costs) Account Supervision/Administration/External $13,000 contact & coordination TOTAL: 589.000 6 7 SUGGESTED SCHEDULE 1992 - 1993 (Subject to revisions to accommodate PCC, VCB and Chamber programs) JULY Work with PCC to finetune proposal Develop logo, theme, graphic treatment, slogan, etc. Visitor research data gathered from hotels Meet with Chamber/VCB to coordinate plans and develop new ideas AUGUST Determine final media schedule, budget, rate negotiation Display ads co-op participation solicited Ad placed Display ad artwork developed Visitor data compiled Visitor questionnaire mailed out SEPTEMBER Visitor Research report completed Co-op solicitation completed Final ad artwork created Winter ads placed Winter public relations effort decided; program instigated Work with local businesses for co-op in promotions Develop Christmas tourist program OCTOBER Special program / projects for winter continue Place ads NOVEMBER Place ads Develop off season special promotion / tie to New Year Work with Christmas tourist program DECEMBER Place ads for 1993 Develop "dead season' special promotion JANUARY Winter visitor research begins Public relations specialty programs continue Place ads /o FEBRUARY Winter visitor research concludes Visitor questionnaires distributed MARCH Visitor survey reports completed Review programs relative to survey results; revise if needed APRIL Evaluate campaign to date; modify on public relations / specialty side Re-instigate co-op ideas for Fall 1993 MAY Evaluate campaign; instigate any available final summer Promotional tie-ins (no formal display advertising) Prepare follow-up proposal JUNE Evaluate campaign overall; submit proposal for fiscal 1993-94 9�9 I. ABOUT BARNETT COX & ASSOCIATES Advertising veterans Claude Barnett of Monterey and Dave and Maggie Cox of San Luis Obispo teamed up in 1989 to expand Barnett Advertising of Monterey into the first full service agency serving the entire central coast. The firm, established in 1979, represents clients ranging from retailers to hospitals, shopping centers, hotels, manufacturers and. municipalities. BARNETT COX&ASSOCIATES(BC&A) has award winning talents in radio, television and print advertising. The company's principals are all former broadcasters and print specialists who have a working knowledge of media and its use for effective communication. BC&A has offices in Monterey and San Luis Obispo. BC&A prides itself in its abilities to design programs to meet individual client needs. The agency is grounded in the philosophy that advertising and marketing are more successful when campaigns reflect humor and innovative creativity. The team at BC&A bring that kind of spirit to their work, and prove it with award winning campaigns for clients like Sierra Vista Regional Medical Center, Commerce Bank, Paso Robles Wine Festival and the City of San Luis Obispo ("Les & Lo Flo"). BC&A believes that the best campaigns are created through a collaborative effort with client principals and agency staff. We work closely with our clients to understand specific needs, philosophies and past successes and failures. BC&A offers services running the gamut of need for virtually any company, and is pleased to devise a custom program for each business. We hope to work with the City of San Luis Obispo in creating its advertising plan and program. e 1992 Barnes Car&Associa+es 9- 9� iz II. AGENCY PRINCIPALS Agency personnel who would be involved in the City of SLO campaign include the following individuals. DAVID COX, the firm's San Luis Obispo principal, offers a unique blend of skills in local advertising, marketing and public relations. He has a keen understanding of the local market, having moved to San Luis Obispo in 1980 after three years' residence on the Monterey Peninsula. Dave served as both Regional Sales Manager and Director of Programming and Operations for KSBW-TV in Salinas/Monterey. In 1980 Dave was promoted to the post of president & general manager for KSBW s sister station, KSBY-TV in San Luis Obispo. He left TV in 1987 to partner.in the creation of a new radio station in San Luis Obispo, KJDJ, 1030 News Radio. He is active in the local community, serving as a past board member for the Downtown.Business Improvement Association, and has been a longtime leader in the SLO Chamber of Commerce, where he currently serves as a vice president. MAGGIE COX came to San Luis Obispo in 1983 after a successful career in television in Sacramento, San Francisco and Monterey. Serving as Director of Advertising and Marketing for KSBW television, she created advertising campaigns recognized by the Advertising Club of Monterey for top honors for three consecutive years. In 1983 she became communications director for the San Luis Obispo Chamber of Commerce, and was named Assistant Manager and Director of Governmental Affairs three years later. Maggie was honored nationally for her work as a writer, editor and publications coordinator, and, in 1991 she received the award for Chamber Staff Person of the Year for the State of California. Maggie's public relations and publicity skills guided the chamber to the forefront of local business issues. In 1991 she decided to apply her skills fulltime to the agency and left the Chamber to join BC&A as a partner. e 1992 Barna Cox do Aswciata / 13 JIM SEYBERT Jim is best known as a radio talk show personality with KJDJ in San Luis Obispo and KSMA in Santa Maria. His past experience includes tenure with Platinum Marketing, a record marketing company. While with Platinum, Jim was a member of the team who launched the phenomenally successful marketing effort of Paula Abdul. He is an award winning specialist in audio production, and has been tapped by BC&A to coordinate broadcast production as well as voice many agency commercials. Jim also manages a list of clients which includes the Cliffs Resort at Shell Beach. ERA Hunter Realty in Santa Barbara County and Courier Systems. MARY GAMLIN is the firm's account coordinator and chief media buyer. Growing up in a military family found Mary living all over the world. She eventually settled in Reno, and attended college at the University of Nevada. Parttime employment during college coupled with classes in marketing and advertising led Mary to be selected for a prestigious summer internship program at Mary's San Francisco store. From Macy's she went to GAP Stores, where her skills were recognized with a Store Manager award for the West Coast division. The principals at BC&A selected Mary for their team based on her proven abilities in the retail sector, coupled with sharp writing skills and creative abilities. e 1992 Bamea Car&Amocima 9-ion !4 BC&A contracts with different graphic designers and photographers depending on client needs and budgets. For . purposes of this proposal, designers/photographers we would recommend include the following: Catherine Kornreich & Melanie Gleason Kornreich Gleason Design 385 Higuera San Luis Obispo, CA 93401 phone: 541-8602 Pierre Rademaker Rademaker Design 738 Higuera San Luis Obispo, Ca 93401 phone: 544-7774 Scott Loy Loy Photography P.O. Box 3018 San Luis Obispo, CA 93401 phone: 522-2716 Laura Manss Matrix Communications 229 Pajaro Salinas, CA 93901 phone: (408) 757-4164 o 1992 Bm=Cox&Associates III. CLIENT INFORMATION BC&A is proud to include these leading businesses and organizations on its San Luis Obispo client list. Also included is a listing of client references. More references can be provided upon request. ♦ Blake Printing & Publishing / Poor Richard's Press ♦ Cliffs Resort Hotel at Shell Beach ♦ City of San Luis Obispo Water Conservation ♦ City of SLO Transit ♦ Commerce Bank ♦ Cuesta Title ♦ Downtown Business Improvement Association ♦ Madonna Plaza ♦ Old Country Deli ♦ Pacific Gas & Electric Company ♦ Paso Robles Wine Festival ♦ Pismo Beach Visitor's and Convention Bureau ♦ Sierra Vista Regional Medical Center ♦ Paso Robles Wine Festival 0 1992 Bamea Car&Assoeiara List of Client References SIERRA VISTA REGIONAL MEDICAL CENTER San Luis Obispo, California, only acute care medical center in San Luis Obispo County. Agency provides advertising, public relations and collateral materials. Contact: Lionel Chadwick Vice President/CFO 1010 Murray Avenue San Luis Obispo, CA 93405 (805)546-7698 BLAKE PRINTING & PUBLISHING (Poor Richard's Press) San Luis Obispo, California, full services printing and publishing company with offices in six locations on the central coast. Agency provides radio and television advertising services. Contact: Penny Lentz Marketing Director 2222 Beebee Street San Luis Obispo, CA 93401 (805)543-6845 COMMERCE BANK OF SAN LUIS OBISPO San Luis Obispo, California, largest independent bank serving San Luis Obispo County exclusively with four branches. Agency provides advertising, public relations and collateral materials. Contact: Bob Voorhees Senior Vice President 545 Higuera Street San Luis Obispo, CA 93401 (805)545-8887 CITY OF SAN LUIS OBISPO (Water Conservation) San Luis Obispo, California, a division of the city utilities department. Agency provides public relations and information materials, media contact, advertising and public education programs. Contact: -Ron Munds Water Conservation Coordinator (805)781-7258 c 1992 Bamea Car&A.nxiaza /7 AGENCY SERVICES Advertisinft Aiblic Relations ♦ Ad Development ♦ Publicity ♦ Radio & TV Production ♦ Press Kits ♦ Print Production ♦ News Releases ♦ Media Planning ♦ Features ♦ Media Buying ♦ Special Events Vendor & Co-op Services Collateral ♦ Program Design ♦ Brochures ♦ Presentations ♦ Newsletters ♦ Implementation ♦ Catalogs ♦ Support Material ♦ One Sheets Market Research Direct Response ♦ Market Surveys • Program Planning ♦ Opinion Polls ♦ Administration ♦ Focus Groups- a Creative Materials ♦ Analysis 0 1992 Banes Cox&Assoticra ��/W I List of Client References SIERRA VISTA REGIONAL MEDICAL CENTER San Luis Obispo, California, only acute care medical center in San Luis Obispo County.- Agency provides advertising, public relations and collateral materials. Contact: Lionel Chadwick Vice President/CFO 1010 Murray Avenue San Luis Obispo, CA 93405 (805)546-7698 BLAKE PRINTING & PUBLISHING (Poor Richard's Press) San Luis Obispo, California, full services printing and publishing company with offices in six locations on the central coast. Agency provides radio and television advertising services. Contact: Penny Lentz Marketing Director 2222 Beebee Street San Luis Obispo, CA 93401 (805)543-6845 COMMERCE BANK OF SAN LUIS OBISPO San Luis Obispo, California, largest independent bank serving San Luis Obispo County exclusively with four branches. Agency provides advertising, public relations and collateral materials. Contact: Bob Voorhees Senior Vice President 545 Higuera Street San Luis Obispo, CA 93401 (805)545-8887 CITY OF SAN LUIS OBISPO (Water Conservation) San Luis Obispo, California, a division of the city utilities department. Agency provides public relations and information materials, media contact, advertising and .public education programs. Contact: Ron Munds Water Conservation Coordinator (805)781-7258 01992.Bomw Cor h Aaociata PROFESSIONAL SERVICES AGREEMENT TO PROVIDE ADVERTISING SERVICES This agreement is made this day of 1992 by and between the CITY OF SAN LUIS OBISPO, California (hereinafter referred to as "City"), and BARNETT COX & ASSOCIATES OF SAN LUIS OBISPO, (hereinafter referred to as "Contractor'). WITNESSETH: WHEREAS, City desires to retain certain professional services in conjunction with an advertising program as recommended by the Promotional Coordinating Committee (PCC). The services being provided by the Contractor under this contract are professional advertising services to facilitate and implement the speck components of the program; and WHEREAS, City desires to engage Contractor to provide these services by reason of its qualifications and experience for performing such services, and Contractor has offered to provide the requested services on the terms and in the manner set forth herein. NOW, THEREFORE, in consideration of their mutual covenants, the parties hereto agree as follows: 1. PROGRAM COORDINATION: a. CITY. The City Administrative Officer, or a designated representative, shall be the Program Manager representing the City for all purposes under this agreement. They shall supervise the progress and execution of this agreement. b. CONTRACTOR. Contractor shall assign a single Program Manager to have overall responsibility for the progress and execution of this agreement for Contractor. Maggie Cox is hereby designated as the Program Manager for Contractor. Should circumstances or conditions subsequent to the execution of this document require a substitute Program Manager for any reason, the Program Manager substitution shall be subject to the prior written approval of the City Program Manager. 2. DUTIES OF CONTRACTOR: a. Services to be furnished. Under general direction of the City Program Manager, Contractor shall provide all specified services as set forth in "Exhibit A°, attached hereto and incorporated herein by this reference, or as amended by the City Council. b. Laws to be observed. Contractor shall: ATTACHMENT 2 Page 2 Advertising Services Contract 1. Procure all permits and licenses, pay all charges and fees, and give all notices which may be. necessary and incidental to the due and lawful prosecution of the services to be performed by Contractor under this agreement. 2. Keep itself fairly informed of all existing and proposed federal, state and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this agreement, and materials used in Contractor's performance under this agreement, or the conduct of the services under this agreement; 3. At all times observe and comply with, and cause all of its employees to observe and comply with, all of said laws, ordinances, decrees and orders mentioned above. 4. Immediately report to the City's Program Manager in writing any discrepancy or inconsistency it discovers in said laws, ordinances, regulations, orders and decrees mentioned above in relation to plans, drawings, specifications, or provisions of this agreement. C. Release of reports and information. Any reports, information, data or other material given to, or prepared or assembled by, Contractor under this agreement shall be the property of City and shall not be made available to any individual or organization by Contractor, except the Chamber of Commerce and the Visitors and Conference Bureau, without the prior written approval of the City's Program Manager. d. Copies of reports and information. If City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Contractor is required to furnish in limited quantities as part of the services under this agreement, Contractor shall provide such additional copies as are requested, and City shall compensate Contractor for the costs of duplicating of such copies at Contractor's direct expense. e. Qualifications of Contractor. Contractor represents that it is qualified to furnish the services described under this agreement. f. In addition to the Advertising Services Agreement, the City may contract with the Chamber of Commerce and the San Luis Obispo County Visitors and Conference Bureau (VCB) for.visitors and promotional services. The Contractor acknowledges the potential for duplication of efforts and costs as a result of these contracts with the City. In performing its services under this agreement, the Contractor agrees to make every reasonable effort to coordinate activities and to identify and avoid potential duplication of costs associated with the VCB and Chamber of Commerce agreements. Page 3 Advertising Services Contract 3. DUTIES OF CITY City agrees to cooperate with Contractor in its performance of that work described in Exhibit "A", attached hereto and incorporated by this reference, or amended work plans approved by the City Council. The City Program Manager shall work closely with the PCC and will incorporate its comments, guidance and desires into the administration and execution of this contract to the degree that such is reasonable and feasible. 4. COMPENSATION Contractor will bill City and be compensated in accordance with Exhibit "A", attached hereto and incorporated by this reference, as currently exists or may be amended. 5. TIME FOR COMPLETION OF WORK Program is for a one year period commencing July 1, 1992 and ending June 30, 1993. Contractor shall perform services in a timely manner with direction and guidance from City Program Manager and PCC. Contractor acknowledges timing is at the sole discretion of City. 6. TEMPORARY SUSPENSION The City Program Manager shall have the authority to suspend this agreement wholly or in part, for such period as is deemed necessary due to unfavorable conditions or to the failure on the part of the Contractor to perform any provision of this agreement. Contractor will be paid the compensation due and payable to the date of temporary suspension. 7. SUSPENSION AND TERMINATION a. Right to terminate. The City retains the right to terminate this agreement for any reason by notifying the Contractor in writing sixty (60) days prior to termination and by paying the compensation due and payable to the date of termination; provided, however, if this agreement is terminated for fault of Contractor, City shall be obligated to compensate Contractor only for that portion of Contractor services which are of benefit to City. Said compensation is to be arrived at by mutual agreement of the City and Contractor. Should they fail to agree, then an independent arbitrator is to be appointed by mutual agreement and whose decision shall be binding upon the parties. Page 4 Advertising Services Contract b. Return of materials. Upon such termination, Contractor shall turn over to the City immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by Contractor, and for which Contractor has received reasonable compensation, or materials given to Contractor in connection with this agreement. Such materials shall become permanent property of City. Contractor, however, shall not be liable for City's use of incomplete materials or for City's use of complete documents if used for other than the project contemplated by this agreement. 8. INSPECTION: Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of Contractor are being performed in accordance with the requirements and intentions of this agreement. All work done and all materials furnished, if any, shall be subject to the City Program Manager's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its agreements as prescribed. 9. OWNERSHIP OF MATERIALS: All original drawings, plans, documents and other materials prepared by, or in possession of, Contractor pursuant to this agreement shall become the permanent property of the City, and shall be delivered to the City upon demand. Photographic rights shall be established for original negatives or transparencies. 10. INDEPENDENT JUDGMENT: Failure of the City to agree with Contractor's independent findings, conclusions, or recommendations, if the same are called for under this agreement, on the basis of differences in matters of judgment shall not be construed as a failure on the part of the Contractor to meet the requirements of this agreement. 11. ASSIGNMENT: SUBCONTRACTORS: EMPLOYEES: This agreement is for the performance of professional advertising and marketing services of the Contractor and is not assignable by the Contractor without prior consent of0the City in writing. The Contractor may employ other specialists to perform special services as required with prior approval by the City. 12. NOTICES: All notices hereunder shall be given in writing and mailed, postage prepaid, by Certified Mail, addressed as follows: Page 5 Advertising Services Contract To Contractor: Barnett Cox & Associates 992 Monterey Street, Suite B San Luis Obispo, CA 93401 To City: City of San Luis Obispo P.O. Box 8100 San Luis Obispo, CA 93403-8100 Attention: David Gray, Administrative Analyst 13. INTEREST OF CONTRACTOR: Contractor covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services hereunder. Contractor further covenants that, in the performance of this agreement, no subcontractor or person having such an interest shall be employed. Contractor certifies that no one who has or will have any financial interest under this agreement is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the services hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 14. INDEMNITY: Contractor hereby agrees to indemnify and save harmless City, its officers, agents, and employees: A. Any and all claims and demands which may be made against City, its officers, agents, or employees by reason of any injury to or death of any person or corporation caused by a negligent act or omission of Contractor under this agreement or of Contractor's employees or agents. B. Any and all damage to or destruction of the property of City, its officers, agents, or employees, occupied or used by or in the care, custody, or control of Contractor or in proximity to the site of Contractor's work, caused by any negligent act or omission of Contractor under this agreement or of Contractor's employees or agents. C. Any and all claims and demands which may be made against City, its officers, agents or employees by reason of any injury to or death of or damage suffered or sustained by an employee or agent of Contractor under this agreement, however caused, excepting, however, any such claims and demands which are the result of negligence or willful misconduct of City, its officers, agents, or employees. 9./7 Page 6 Advertising Services Contract D. Any and all claims and demands which may be made against City, its officers, agents, or employees by reason of any infringement or alleged infringement of any patent rights or claims cause by the use of any apparatus, appliance, or materials furnished by Contractor under this agreement; and E. Any and all penalties imposed or damages sought on account of the violation of any law or regulation or of any term or condition of any permit, when said violation of any law or regulation, or any term or condition of any permit, is due to negligence on the part of the Contractor. 15. WORKERS' COMPENSATION: Contractor certifies that she is aware of the provision of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with provisions of that code, and certifies that it will comply with such provisions before commencing the performance of the work on this agreement. 16. INSURANCE: Contractor shall provide proof of insurance in accordance with Insurance Requirements for Consultants as described in Attachment "B" attached hereto and incorporated herein by reference as though fully set forth. 17. AGREEMENT BINDING: The terms, covenants, and conditions of this agreement shall apply to and shall bind the heirs, successors, executors, administrators, assigns, and subcontractors of both parties. 18. WAIVERS: The waiver by either party of any breach or violation of any term, covenant, or condition of this agreement or of any provision, ordinance, or law shall not be deemed to be a waiver of any subsequent breach of violation of the same or of any other term, covenant, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this agreement or of any applicable law or ordinance. Q% 0 Page 7 Advertising Services Contract 19. COSTS AND ATTORNEY'S FEES: The prevailing party in any action between the parties to this agreement brought to enforce the terms of this agreement or arising out of this agreement may recover its reasonable costs and attorney's fees expended in connection with such an action for the other party. 20. DISCRIMINATION: No discrimination shall be made in the employment of persons under this agreement because of the race, color, national origin, ancestry, religion, sexual orientation, or sex of such person. If Contractor is found to be in violation of the nondiscrimination provisions of the State of California Fair Employment Practices Act or similar provision of federal law or executive order in the performance of this agreement, it shall thereby be found in material breach of this agreement. Thereupon, City shall have the power to cancel or suspend this agreement, in whole or in part, or to deduct from the amount payable to Contractor, the sum of Twenty-Five Dollars ($25) for each person for each calendar day during which such person was discriminated against, as damages for said breach of contract, or both. Only a finding of the State of California Fair Employment Practices Commission or the equivalent federal agency or officer shall constitute evidence of .a violation of contract under this paragraph. If Contractor is found in violation of the nondiscrimination provisions of this agreement or the applicable affirmative action guidelines pertaining to this agreement, Contractor shall be found in material breach of this agreement. Thereupon, City shall have the power to cancel or suspend this agreement, in whole or in part or to deduct from the amount payable to Contractor the sum of Two Hundred Fifty Dollars (S250) for each calendar day during which Contractor is found to have been in noncompliance as damages for said breach of contract, or both. 21. AGREEMENT CONTAINS ALL UNDERSTANDINGS: This document represents the entire and integrated agreement between City and Contractor and supersedes all prior negotiations, representations, or agreements s either written or oral. This document may be amended only by written instrument, signed by both City and Contractor. All provisions of this agreement are expressly made conditions. This agreement shall be governed by the laws of the State of California. Page 8 Advertising Services Contract IN WITNESS WHEREOF, City and Contractor have executed this agreement on the day and year first above written. CITY OF SAN LUIS OBISPO: BARNETT COX ASSOCIATES Ron Dunin, Mayor Pr ent ATTEST: City Clerk APPROVED AS TO FORM: qty tto ney Finance Director dg\advertis 9'2Z) EXHIBIT A The Contractor shall coordinate and implement for one year, a diverse advertising campaign for the promotion of the City of San Luis Obispo as a tourism destination. 1. The primary purpose of the campaign is to increase tourism to the City of San Luis Obispo. 2. The Contractor will provide the Promotional Coordinating Committee, hereinafter called the PCC, with monthly written reports. The reports will provide information on campaign progress and include copies of all ads, tear sheets, production expenses, bills for services, an outline of work to be completed in the next month, and other pertinent information. 3. The City Program Manager and the PCC will provide the Contractor with direction and guidance based upon the monthly review of Contractor's performance and recommendations. 4. A summary of the proposed advertising campaign for the City of San Luis Obispo in 1992-93 is described in the attachment to the Council Agenda Report. 5. Payment to the Contractor will be made on all completed work, jobs in progress and media purchases approved by the City Program Manager within fifteen (15) calendar days of receipt of Contractor's.invoice. Requests for payment will be sent directly to the City Program Manager. 6. The budget for Barnett Cox & Associates is as follows: F.Y. 1992-93 $89,000 Total Budget for F.Y. 1992-93 is $89,000. dg\advertis 0 EXHIBIT B MURANCE REQUIREMENTS FOR CONSULTANTS Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, his agents, representatives, employees. Minimum Scone of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1187) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Minimum Limits of Insurance Consultant shall maintain limits no less than: 1. General Liability: 51,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either. the insurer shall reduce or eliminate such deductibles or self-instued retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant;premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. 4. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. J 5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty(30)days'. prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Covemen Consultant shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage, Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. MEETING AGENDA Q DATE -7--1 4AITEM # J July 7, 1992 Honrable Mayor & Councilmembers City of San Luis Obispo P.O. Box 8100 San Luis Obispo, CA 93406 Dear Mayor Dunin& Councilmembers: I am pleased that Barnett Cox& Associates is being recommended for selection as the City's agency for tourism advertising. We are excited at the prospect of working with you and the PCC in fulfilling that contract. I want to clarify one aspect of our proposal: that of the issue of our subcontractors for graphic design services. We listed several subcontractors in our proposal, including Pierre Rademaker Design as well as a Salinas firm named Matrix Communications (convenient to our office in Monterey). My intention was to indicate a range of design possibilities. The high caliber of Rademaker Design's work is well known to you, and it is that excellence which puts the firm on our list. However, in order to avoid difficulties with conflicts of interest as well as the issue of an out of town designer, we will stipulate that BC&A will not contract with either Rademaker Design nor Matrix Communications in the fulfillment of the tourism contract. I hope this action resolves any difficulty and that we can be approved for selection. Best regards, REC.,;EIVEE® JUL ') 1992 Maggie Cox CITv COUNCIL SAN LUIS OBIS.P_O,ii@ COPIES 70: ❑•Denotes Ammon ❑ FYI Y counol ❑ CDD DUL 6Q6- O ❑ FIN.DIR ACAO ❑ FIRE CHKEF Q',ATTORNEY D FW DIR 2 CLE /ORIG. D POUCE Cx ❑ MGMT.TEAM ❑ REC.DIR . ❑ C READ FILE ❑ U77L DIR G�' T T Ga' ►��._